An overview about Central Government Employees’ Increment

‘Increment’ is definitely one of the most popular words in the Central Government employee’s dictionary. It is a known fact that each year, without fail, increment brings considerable raise in salary for Central Govt employees. Until about the 5th CPC, there was no major change in the increment system. But, the 6th CPC brought in landmark reforms in the increment system.

Until then, increments were given in the form of a consolidated amount. The 6th CPC recommended that it be calculated on percentage basis. The Central Government ordered that it be calculated at 3% of the employee’s basic pay with effect from 1.1.2006.

The CG employees didn’t realize how useful this was going to be. They thought it wouldn’t amount for much. It was Rs.75 for Rs. 3050 and revised to Rs. 210 for Rs.7000 with simple calculation.

But that was not the end of the story. It was only after a number of years that they realized the true impact of this reform. Let us explain the benefits with an example:

Let us consider the examples of A, and B, two employees who had joined the Central Government services: In five years of getting recruited, B gets a promotion. A gets a promotion three years after B.

On the basis of the 6th CPC

6th CPC

A’ Employee

B’ Employee

1.9.2008

1900

5830

7730

1.9.2008

1900

5830

7730

1.7.2009

1900

6070

7970

1.7.2009

1900

6070

7970

1.7.2010

1900

6310

8210

1.7.2010

1900

6310

8210

1.7.2011

1900

6560

8460

1.7.2011

1900

6560

8460

1.7.2012

1900

6820

8720

1.7.2012

1900

6820

8720

1.7.2013

1900

7090

8990

1.7.2013

2400

7090

9490

1.7.2014

1900

7360

9260

1.7.2013

2400

7380

9780

1.7.2015

1900

7640

9540

1.7.2014

2400

7680

10080

1.7.2016

2400

7930

10330

1.7.2015

2400

7990

10390

1.7.2016

2400

8240

10640

1.7.2016

2400

8310

10710

On the basis of the 5th CPC :

5th CPC

‘B’ Employee

‘A’ Employee

1.2.2000

3050

1.2.2000

3050

1.2.2001

3125

75

1.2.2001

3125

75

1.2.2002

3200

75

1.2.2002

3200

75

1.2.2003

3275

75

1.2.2003

3275

75

1.2.2004

3350

75

1.2.2004

3350

75

1.2.2005

4000

100

1.2.2005

3425

75

1.2.2006

4100

100

1.2.2006

3500

75

1.2.2007

4200

100

1.2.2007

3575

75

1.2.2008

4300

100

1.2.2008

4000

100

Can you understand the difference now?

In 6th CPC the difference between ‘A’ and ‘B’ will be Rs.70 only, whereas in 5th CPC it will be Rs.300.

The Junior doesn’t have to worry that the senior has a tremendous advantage over him. In the past, the Junior wouldn’t be able to attain the Senior’s basic pay until retirement.